Metric loss

Marriott sees key U.S. and Canada revenue metrics at pre-COVID levels for remainder of year

People are seen outside a Courtyard Marriott hotel in Manhattan, New York, U.S., March 23, 2022. REUTERS/Andrew Kelly

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May 4 (Reuters) – Hotel operator Marriott International Inc (MAR.O) said on Wednesday it expects a key revenue indicator for its U.S. and Canadian markets to hit lows. ‘before the pandemic for the rest of the year, as leisure and business travel pick up the pace.

Marriott followed rival Hilton Worldwide Holdings Inc (HLT.N) in restoring its dividend earlier than expected, but refrained from offering a profit forecast for the year.

Hoteliers benefited from higher demand in the first quarter as people spent more on travel, restaurants and hotel stays despite rising inflation. Read more

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The ability to reprice hotel rooms daily has also helped hoteliers cope with inflationary pressures.

Marriott expects RevPAR, or revenue per available room, for the remainder of the year to be “about flat” with 2019 levels in the United States and Canada.

The company also said it expects April RevPAR to have “fully recovered.”

“Luxury pricing has really led to a bigger than expected RevPAR recovery,” said Bernstein analyst Richard Clarke.

Marriott posted adjusted earnings of $1.25 per share in the first quarter, against estimates of 90 cents per share, according to Refinitiv data, helped in part by higher prices at its luxury properties.

The company’s comparable RevPAR increased by 96.5% in the quarter under review, with gains in all regions except Greater China due to the new pandemic outbreak there.

“We are increasingly optimistic that the global RevPAR gap from pre-pandemic levels will continue to narrow significantly in 2022,” Marriott Chief Executive Anthony Capuano said.

The company has also set a goal to resume share buybacks this year.

Marriott posted revenue of $4.2 billion in the quarter, versus estimates of $4.11 billion.

The company’s global occupancy rate increased from 45% in January to 64% in March.

Marriott shares were trading up 1.6% at $175.80.

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Reporting by Kannaki Deka in Bangalore; Editing by Sriraj Kalluvila and Shounak Dasgupta

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